Megatrends

The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.

City Review

Bucharest City Review

New Report Guarantee

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

About This Report

New Report Guarantee

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

With a 17% real GDP growth rate over 2011-2016, Bucharest was the fourth fastest growing economy in Eastern Europe. The Romanian capital has seen enormous growth in FDI which boosts local labour productivity. Nevertheless, Bucharest is tipped to become a major BPO and tech start-up hub in Europe thanks to its high-speed internet connection, recognised high-tech expertise and large talent pool.

Files are delivered directly into your account within a few minutes of purchase.

Why buy this report?

BUCHAREST HIGHLIGHTS

Bucharest is Romania's economic powerhouse, featuring superior labour productivity (GVA per person employed) that was 187% higher than in the rest of the country in 2016. The city is an attractive destination for foreign capital inflows in Eastern Europe, which boosts the efficiency of its workforce.

Higher labour productivity raises household disposable income

Reaping the benefits of higher labour productivity, disposable income per household in Bucharest exceeded the rest of the country's average by 42% in 2016. The income gap with other regions of Romania is dampened by a sizeable part of Bucharest's economic output being recuperated by multinational companies as profits.

Lower proportion of expenditure spent on necessities

Due to higher disposable income, consumer expenditure (excluding housing and transport) per household was 26% higher in Bucharest compared with the rest of the country in 2016. Bucharest's households allocate a lower share of their total expenditure to necessity items, such as food and non-alcoholic drinks compared to other parts of Romania.

Higher housing costs

The income premium in the capital (+42% in 2016) does not cover additional city-specific expenses. In 2016, combined household expenditure on housing and transport was 44% higher in the city than in the rest of the country. The difference is principally driven by pricier housing in Bucharest.